CFA Level II Exam Guide: Format, Syllabus Weights & How to Prepare

What is the CFA Level II exam?

CFA Level II moves from breadth to depth. The topic list is almost the same as Level I, but each topic is examined through detailed valuation and analysis: forecasting cash flows, pricing bonds with embedded options, modelling derivative payoffs, adjusting financial statements across accounting standards, and evaluating portfolio decisions.

The format changes too. Instead of independent questions, Level II presents vignettes, each a page or two of case information followed by a set of questions that all draw on it. Reading efficiently, extracting the right numbers and ignoring distractors is as much a part of the exam as the finance.

Level II is widely regarded as the hardest of the three levels because of the volume of calculation it demands and because the vignette format punishes gaps: one misread assumption can cost an entire item set.

Who sits it

Candidates who have passed CFA Level I
Equity and credit analysts who want to formalise valuation skills
Portfolio management associates and research staff preparing for the charter

Exam format at a glance

Questions: 88 multiple-choice questions grouped into 22 item sets (vignettes), in two sessions of 44
Duration: Two sessions of 132 minutes, with an optional break between them
Delivery: Computer-based at Prometric test centres
Exam windows: May, August and November
Fees (USD): Registration $1,140 (early) or $1,490 (standard); no separate enrollment fee
Prerequisite: A pass in CFA Level I
Recent pass rate: 43% (May 2026); first-time candidates 48%
Recommended study: CFA Institute reports candidates average more than 300 hours

Exam-body facts last checked September 2026. Fees, dates and formats change; confirm the current details with CFA Institute before registering.

CFA Level II pass rates by sitting

Sitting	Pass rate
May 2026	43%
November 2025	42%
August 2025	44%
May 2025	54%
November 2024	39%
August 2024	47%
May 2024	59%
November 2023	44%
August 2023	44%
May 2023	52%

Published by CFA Institute for every window. Level II is offered three times a year, so there is no February sitting. The long-run average since 1963 is 46%, and results swing more between windows than at Level I. First-time candidates pass at a higher rate than the overall figure: 48% in May 2026.

Syllabus and topic weights

TopicWeightLessonsQuestionsFlashcards

1.Quantitative Methods5–10% · 30 lessons · 0 questions · 131 cards5–10%300131
1. Basics of Multiple Regression and Underlying Assumptions
2. Evaluating Regression Model Fit and Interpreting Model Results
3. Model Misspecification
4. Extensions of Multiple Regression
5. Time-Series Analysis
6. Machine Learning
7. Big Data Projects
2.Economics5–10% · 16 lessons · 0 questions · 34 cards5–10%16034
1. Currency Exchange Rates: Understanding Equilibrium Value
2. Economic Growth
3.Financial Statement Analysis10–15% · 33 lessons · 0 questions · 111 cards10–15%330111
1. Intercorporate Investments
2. Employee Compensation: Post-Employment and Share-Based
3. Multinational Operations
4. Analysis of Financial Institutions
5. Evaluating Quality of Financial Reports
6. Integration of Financial Statement Analysis Techniques
4.Corporate Issuers5–10% · 18 lessons · 0 questions · 72 cards5–10%18072
1. Analysis of Dividends and Share Repurchases
2. Environmental, Social, and Governance (ESG) Considerations in Investment Analysis
3. Cost of Capital: Advanced Topics
4. Corporate Restructuring
5.Equity Valuation10–15% · 34 lessons · 0 questions · 109 cards10–15%340109
1. Equity Valuation: Applications and Processes
2. Discounted Dividend Valuation
3. Free Cash Flow Valuation
4. Market-Based Valuation: Price and Enterprise Value Multiples
5. Residual Income Valuation
6. Private Company Valuation
6.Fixed Income10–15% · 31 lessons · 0 questions · 95 cards10–15%31095
1. The Term Structure and Interest Rate Dynamics
2. The Arbitrage-Free Valuation Framework
3. Valuation and Analysis of Bonds with Embedded Options
4. Credit Analysis Models
5. Credit Default Swaps
7.Derivatives5–10% · 13 lessons · 0 questions · 44 cards5–10%13044
1. Pricing and Valuation of Forward Commitments
2. Valuation of Contingent Claims
8.Alternative Investments5–10% · 21 lessons · 0 questions · 74 cards5–10%21074
1. Introduction to Commodities and Commodity Derivatives
2. Overview of Types of Real Estate Investment
3. Investments in Real Estate through Publicly Traded Securities
4. Hedge Fund Strategies
9.Portfolio Management10–15% · 32 lessons · 0 questions · 110 cards10–15%320110
1. Economics and Investment Markets
2. Analysis of Active Portfolio Management
3. Exchange-Traded Funds: Mechanics and Applications
4. Using Multifactor Models
5. Measuring and Managing Market Risk
6. Backtesting and Simulation
10.Ethical and Professional Standards10–15% · 10 lessons · 0 questions · 52 cards10–15%10052
1. Code of Ethics and Standards of Professional Conduct
2. Guidance for Standards I–VII
3. Application of the Code and Standards: Level II

Lesson, question and flashcard counts are StudyOptima's published content for each topic. Expand a topic to see its subtopics.

How to prepare for CFA Level II

1
Practise in vignette format from the start. The habit of reading the questions first, then the case, then answering, has to be built over months.
2
Equity Valuation, Fixed Income and Financial Statement Analysis are the heavy calculation topics and the ones where most marks are won or lost. Build models by hand until each step is mechanical.
3
Quantitative Methods at Level II is regression, time-series and machine learning. It is a small weight, but the same methods appear inside other topics' vignettes.
4
Keep Ethics in the rotation all the way through. The Standards are the same as Level I, but the cases are longer and the distinctions finer.
5
Sit full mocks with the real timing of six minutes per item set (three minutes per question). Level II candidates run out of time far more often than Level I candidates.

Study for CFA Level II on StudyOptima

238 study lessons

Condensed notes for every topic, organised by learning objective, with read-progress tracking.

1,568 practice questions

Exam-style questions with worked explanations, timed mocks, and re-drills of what you got wrong.

832 flashcards

Spaced-repetition review of the definitions and formulas the exam keeps coming back to.

Free lessons to start with

Read these with a free account, no card required.

Plans and pricing

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CFA Level II FAQ

How is an item set scored?

Each of the four questions in a vignette is scored independently, so a mistake on one does not automatically cost the others. Wrong answers carry no penalty, so you should always answer every question.

Can I sit Level II in the window immediately after passing Level I?

Usually, if registration is still open. Level I results arrive roughly five to eight weeks after the exam, so a February Level I pass can lead into the May Level II window, but the preparation time is tight.

Are the topic weights the same as Level I?

No. Ethics falls to 10–15% and Portfolio Management rises to 10–15%, with most other topics moving to 5–10% or 10–15% bands. The ranges above are CFA Institute's published figures.

Does StudyOptima have vignette-style questions for Level II?

Our Level II bank is built around the 2026 learning modules with worked explanations, and our study notes and formula reference follow the same structure. Timed mock mode lets you practise under exam conditions.

Related exams

CFA Level I

The first of three levels of the Chartered Financial Analyst Program, testing a broad foundation in investment tools, asset classes, portfolio management and ethics.

FRM Part II

The second and final FRM exam: applying risk measurement and management to real portfolios, balance sheets and current market issues.

CFA Level II exam guide